How long does it take to arrange a bridging loan?

It really is fast finance. With bridging loans, you’re looking for speed. Most people taking a bridging loan need it as auction finance. With some lenders, the quickest it can be done is three days, while with others it can be three weeks.

What if I have bad credit? Can I still get a bridging loan?

Bad credit isn’t a deal breaker for most bridging lenders. Many lenders will accept you, but we need to consider how that bad credit affects how you will come out of the bridging loan.

If you’re going to sell, most bridging lenders will be more than happy. If you’re looking to exit on a mortgage, make sure your broker has you ready for that. You don’t want a situation where you can’t pay back your bridging loan because your bad credit prevents you from getting a mortgage.

The bridging lender themselves may give you the lending, but just speak to a broker before if you have bad credit.

What do bridging loans cost?

Bridging loans are a lot more expensive than normal mortgages, because they’re short-term and designed to cover that gap for you. The interest is typically 0.6% to 1.25% per month.

A normal mortgage is just 4.5% or 5% per year, as we speak today in December 2025. With a bridging loan, you’re paying monthly, so it will add up to 11% or 12% per year. Bridging loans are expensive because they’re short-term finance.

How do you apply for a bridging loan? What’s the process?

Speak to a mortgage broker for an initial consultation about what you want to do and what you want to buy. We’ll assess the security, do a valuation and get you a Decision in Principle on the same day.

The difference from a mortgage is that there isn’t really an underwriting process. It’s simply the property that dictates the amount of borrowing. Everything is done much, much faster. You just need to liaise with your broker and your solicitor to apply for and get the bridging loan in the timeframe that you have dictated.

What are the alternatives to a bridging loan?

There are a number of alternatives. It all depends on what a client is looking to do. If you’re just looking to borrow some money and you already have a mortgage, you could speak to your current lender and just get a further advance.

You could also get a second charge as longer-term borrowing on your property. Rather than one to 18 months, that could run for up to 25 years. You can also look at business loans, development finance or private lending within your family. There are other, cheaper options than a bridging loan.

But what we find is that bridging loans are very practical when you are in need of funds for a certain purpose.

What else do we need to know about bridging loans?

Bridging loans are very purpose-led. If you’re looking to go into one, you need a good reason. Whenever we speak to our clients who want a bridging loan, we ask all about what they are looking to do. Usually it’s for auction purchases or properties that are unmortgageable.

Do bear in mind that there are cheaper options than bridging loans, and that they can be risky. But if you speak to a good broker and solicitor, bridging loans with a purposeful reason are very useful.

Key Takeaways:

• A bridging loan is a short-term loan (1-18 months) secured against property, requiring a pre-agreed exit strategy.
• It can be used for any property type, including residential, commercial, auction purchases and unmortgageable properties.
• Repayment of a bridging loan is primarily through remortgaging or selling the property.
• A bridging loan is fast finance (as quick as three days) but significantly more expensive, with interest typically 0.6% to 1.25% per month.
• A bridging loan is purpose-led and risky – and some are not regulated by the Financial Conduct Authority. Bad credit is acceptable, but the exit strategy must be secured.
  
  

SOME BRIDGING FINANCE IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.